Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration and Conciliation Act 1996: s. 11 (6) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration and Conciliation Act, 1996:s. 11 (6) - Appointment of arbitrator - Denial of in view of ll '.. Circular limiting arbitration proceedings only to claims which were less than 20% of value of contract- Held: Claim was not in excess of 20% of total cost - Thus referable to arbitration proceeding - Cost of supplementary work orders issued from time to time to be added to the original cost of work for determining total cost of work orders. Original contract entered in 1996 - Circular issued in 2003 intimating intention to incorporate a clause - Applicability ~ of the circular - Held: Not applicable as the said Circular came ~ into force only from 2003 and not before that, in the absence of any subsequent insertion of that Clause in the original contract - Accordingly, question of applicability of the said Circular could not arise at all. An agreement was executed between the parties which contained arbitration clause. In terms thereof, work order was issued to the appellant on 22.9.1996. The estimated cost of work was Rs.32.75 lacs. Since the + F quantity of work was much more than the work order issued, supplementary work orders were issued from time to time for Rs.4.99 lacs, Rs.3.26 lacs, Rs.2.17 lacs, Rs.2.17 lacs. The total work orders for the cost of Rs.42.60 were issued to the appellant. Some dispute arose between the parties and appellant invoked arbitration clause. High Court dismissed the application for appointment of an ... ~ arbitrator under s.11 (6) of the Arbitration and Conciliation ~ Act, 1996 on the ground that since the value of the claim was more than 20% of the value of the work, the disputes could not be referred to Arbitrator in view of the Circular dated 11.6.2003 issued by the respondent intimating their intention to incorporate Clause 18 in the General Conditions of Contract limiting arbitration proceedings to only such claims, which were less than 20% of the value of the contract. Hence the instant appeal. |
Judge | Hon'ble Mr. Justice Tarun Chatterjee |
Neutral Citation | 2009 INSC 199 |
Petitioner | Deepak Kumar Bansal |
Respondent | Union Of India & Anr. |
SCR | [2009] 2 S.C.R. 530 |
Judgement Date | 2009-02-17 |
Case Number | 1089 |
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